Daniel Bong

Amendment to the Bankruptcy Act 1967 – Protection of Guarantors

Recently, the Dewan Rakyat, the lower but politically dominant house of the Malaysian Parliament, has been reported to have passed the Bankruptcy (Amendment) Bill 2016 (‘Amendment Bill‘) on 29 March 2017 (The reports can be found at Bernama, New Straits Times, the Star and the Malay Mail).  The Amendment Bill can be viewed here. It appears that the Amendment Bill has been passed without any amendments (the Hansard of the 2nd and 3rd reading can be viewed here). This Amendment…

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Between time being of essence and equity

As a starting point, the general rules on the failure to complete by a stipulated time are provided for under section 56 of the Contracts Act 1950. These provisions are reproduced in verbatim as follows:- Effect of failure to perform at fixed time, in contract in which time is essential 56. (1) When a party to a contract promises to do a certain thing at or before a specified time, or certain things at or before specified times, and fails to do any such thing…

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Section 131(1) of the Malaysian Companies Act 1965 and duty to account for profits under Regal (Hastings) Ltd. v. Gulliver

A question arose as to whether the need to disclose secret profits to shareholders pursuant to Regal (Hastings) Ltd. v Gulliver [1967] 2 AC 134 is redundant in light of s.131(1) of the Companies Act 1965 (“CA 1965“).  First of all, s.131(1) of the Companies Act 1965 concerns with disclosure to directors whereas Regal (Hastings) Ltd. v Gulliver concerns with disclosure to shareholders, and there is a very good reason to it. The rule of relevance here is the rule of equity which…

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